Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 42 - No. 34)
What is the purpose of 'accrual accounting'?
To record cash inflows and outflows.
To recognize revenue when earned and expenses when incurred.
To simplify accounting procedures.
To show the company’s liquid assets
Explanation
Accrual accounting's main purpose is to show the revenue and expenses when they are incurred.
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